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Sofcom Systems's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 1046.92.
Sofcom Systems's Days Inventory for the
three
months ended in Mar. 2026 was 0.
Sofcom Systems's Days Payable for the
three
months ended in Mar. 2026 was 937.89.
Therefore, Sofcom Systems's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 109.03.
Sofcom Systems (BOM:538923) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Sofcom Systems Cash Conversion Cycle Related Terms
Sofcom Systems Cash Conversion Cycle Historical Data
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The historical data trend for Sofcom Systems's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:538923 vs IBM, ACN, FISV: Cash Conversion Cycle Comparison
For the Information Technology Services subindustry, Sofcom Systems's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sofcom Systems Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Sofcom Systems's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sofcom Systems's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Sofcom Systems's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sofcom Systems (BOM:538923) has a Cash Conversion Cycle of 109.03 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sofcom Systems and its competitors.
Is Sofcom Systems' Cash Conversion Cycle too high?
Sofcom Systems' current Cash Conversion Cycle is 109.03. The Software industry median Cash Conversion Cycle is 31.04. Sofcom Systems' value of 109.03 is 251.3% above this industry median. Overall, Sofcom Systems has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sofcom Systems' Cash Conversion Cycle compare to IBM and ACN?
Sofcom Systems' Cash Conversion Cycle of 109.03 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 31.04. Sofcom Systems' value of 109.03 is 251.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Software company?
The median Cash Conversion Cycle among Software companies is 31.04, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sofcom Systems's current Cash Conversion Cycle of 109.03 is 251.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sofcom Systems and its competitors. For the Software industry, the median Cash Conversion Cycle is 31.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sofcom Systems's current Cash Conversion Cycle is 109.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sofcom Systems stock overvalued right now?
Based on GuruFocus' analysis, Sofcom Systems (BOM:538923) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹8.66, compared to a current price of ₹19.39 — trading 123.9% above its estimated fair value. The current Cash Conversion Cycle is 109.03 and 251.3% above the Software industry median of 31.04. Sofcom Systems' overall GF Score™ is 37/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Sofcom Systems (BOM:538923), the current Cash Conversion Cycle is 109.03 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sofcom Systems (BOM:538923) Overvalued in 2026?
Based on GuruFocus' analysis, Sofcom Systems stock appears to be overvalued.
The current stock price of ₹19.39 is trading 123.9% above its estimated GF Value™ of ₹8.66.
GuruFocus considers Sofcom Systems to be Significantly Overvalued.
Key valuation signals for BOM:538923:
Cash Conversion Cycle: 109.03
GF Value™: ₹8.66 vs. price of ₹19.39 (123.9% above fair value)
Industry Position: 251.3% above the Software median
No single metric tells the full story. See the BOM:538923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sofcom Systems Ltd provides consultancy for software development in the form of services, turnkey projects, and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication, and manufacturing sectors. It also offers software maintenance, reengineering, and downsizing of software applications in these market segments. The company is providing information technology solutions to both commercial and government clients. The Company is engaged in the trading of Software & other items and providing software consultancy in India. The Company derives revenues from sale of software and consultancy.
37GF Score
Get the complete analysis for BOM:538923
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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